Statement on Equalisation for GMPs AND the application of a ...

Simplified Statutory Minimum Test for NPA 60 tranche of Pre 97 pensionMaximum(1) “all female GMP” with revaluation on the GMP; and(2) Accrued pre 97 pension with NPA 60+ GMP revaluation on “all female GMP”+ revaluation on the “revised excess pension” with NPA 60 or lower(1) “all female GMP” with revaluation on the GMP= 473.15 x 1.0625 8 = £768.48 pa (maximum)(2) Accrued Pre 97 pension with NPA 60+ GMP revaluation on “all female GMP”+ revaluation on the “revised excess pension” with NPA 60 or lower= 308.43 + 295.33 – 29.81 = £573.95 pawhere:GMP revaluation on “all female GMP” = 473.15 x (1.0625 8 – 1) = £295.33 parevaluation on “revised excess pension” with NPA 60 or lower= (308.43 – 473.15) x (1.181 -1) = -£29.81 paThere is insufficient pension in the NPA 60 tranche to meet the StatutoryMinimum of £768.48 pa that must be paid from age 60.In this example Scenario (1) is the maximum. This means that at date of leaving there isinsufficient pension with NPA 60 to cover the female GMP. To avoid double counting thepension payable at 65 is reduced to reflect the corresponding amount by which thepension payable at 60 has been increased to meet the Statutory Minimum. The remaining65 benefits are revalued (at the excess rate) to the Relevant Time.Increase in 60 tranche to the cover female GMP = 473.15 – 308.43 = £164.72 paRevised 65 tranche at the Relevant Time = (953.76 – 164.72) x 1.181= £931.86 paSummary of Pre 97 Pension at the Relevant TimePre 97 pension at RTMale£ paEquivalent Female£ paNPA 60 407.73 768.48NPA 65 1,260.83 931.86Total 1,668.56 1,700.34Note that in this example the total Pre 97 pension (£1,700.34) is unchanged from theopposite sex calculation prior to application of the Statutory Minimum. However, part ofthe Pre 97 pension has been upgraded to a NPA 60 to meet the statutory requirement forfemales at NPA 60.78